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The sexually explicit conversation takes place between two or more persons via telephone, especially when at least one of the participants masturbates or engages in sexual fantasy.
Phone sex conversation may take many forms, including: guided fantasy, sexual sounds, narrated and enacted suggestions; sexual anecdotes and confessions; candid expression of sexual fantasies, feelings, or love, and/or discussion of very personal and sensitive sexual topics.
The provider provided (say) 10 minutes of service, but got to keep all of the money (say 20 minutes).
When the Internet got relatively mature, sale of any sexual service not involving a minor could be made to anyone not a minor.
Typically the telephone companies would bill callers to chat lines and then remit 45% of the money collected to chat line operators.
The telephone companies placed the chat line charges on a customer's local phone bill.
The editor of High Society magazine, Gloria Leonard, is credited with being one of the first people to use "976 numbers", then "900 numbers" for promotional purposes and soon as a revenue stream in the adult industry.
In concept they have a lot in common with platforms such as Ebay: the seller provides the picture(s), description, and sets the price, a percentage of which is kept by the platform.
In the sex industry, similar platforms emerged facilitating the selling of used panties and other odoriferous garments, and for "cam" video sessions, in which the customer, for a fee, can direct the woman on the video screen, and for a higher fee, have a private connection (no one can see caller or provider except each other).
Once means of transmitting payment were developed, phone sex turned into primarily a commercial activity, with customers (overwhelmingly male) and sellers (overwhelmingly female).
Due to the potential for emotional intimacy between those who have engaged in phone sex, it is a matter of some debate whether phone sex is to be considered infidelity when involving a person outside of a committed personal relationship.